Yearly VAT limit is around 68,000 a year. What counts towards that limit is UK+EU income only. USA etc outside the EU income does not count towards the VAT limit. Now, what if an American was currently situated in Germany (sent there to work for a while) and buys stuff from me whilst he's there? Keeping in mind he gets paid to his American bank and pays with his American card. Does it count towards the VAT limit or not? My accountant seems to think it does but I'm trying out other sources because i want him to be wrong lol. Thanks for any feedback.
I'm not 100% sure as it depends on the address you are delivering to, but if the address they give is German then the answer is a definite yes. One thing I am 100% sure about is that you DO NOT mess with HMRC (Her Majesty's Revenue & Customs). They have powers where they don't even need a warrant to enter your premises and investigate your paperwork, they can put you in a position where you need to prove your innocence not they prove you are guilty, and they can make your life a misery if they want to. Most VAT inspectors are very nice people, but don't attempt to pull the wool over their eyes. If you're not sure call them for clarification because they are extremely helpful (in my experience anyway). My strong advice is play it by the book when it comes to VAT, seek help when you are not sure, and don't try to fudge it. If you get it wrong you are guilty. Ignorance of the Law when it comes to VAT is no defence and they will fine you. When I first started in business and registered for VAT, I was late with a payment one quarter in the first year (I forgot because it was all new). I got hit with an "assessment" (their estimate) of £20,000 when the actual VAT bill I should have paid was only somthing like £1700. Fortunately a phone call sorted that out with a stern warning not to be late again - and I never have been since that time.
Thanks for your feedback. I don't sell anything physical. Its non physical goods and services over the internet. So delivery address wont' exist because nothing is getting delivered there.